By TOM KRISHER and MATT O’BRIEN, AP Enterprise Writers
Elon Musk, the billionaire poised to amass Twitter later this week, strolled into the corporate’s headquarters Wednesday carrying a porcelain sink and tweeting “Getting into Twitter HQ – let that sink in!”
Musk’s $44 billion deal to take Twitter personal faces a Friday deadline, though the video he posted supplied no proof that the acquisition is full. Twitter and Musk representatives had no touch upon that query, though Twitter did affirm that Musk’s video tweet was actual. Musk additionally modified his Twitter profile to discuss with himself as “Chief Twit” and his location to Twitter’s San Francisco headquarters.
The splashy video — a classic Musk manufacturing — additionally pulled the highlight again to the world’s richest man and his on-again, off-again pursuit of the social platform.
The Friday deadline to consummate the deal was ordered by the Delaware Chancery Courtroom in early October. It’s the newest step in an epic battle throughout which Musk signed a deal to amass Twitter, then tried to again out of it, main Twitter to sue the Tesla CEO to power him to conclude the deal. If the 2 sides do not meet the Friday deadline, the subsequent step may very well be a November trial.
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Robert Anderson, a legislation professor at Pepperdine College, mentioned he totally expects the deal to shut by Friday’s deadline however didn’t see a lot substance to Musk’s video. “I don’t see something uncommon about it, apart from that he introduced a sink,” he mentioned.
Musk had been anticipated to go to Twitter this week and is anticipated to return once more Friday if the deal is finalized, based on an inside memo cited in a report by Bloomberg Information.
His obvious enthusiasm about visiting Twitter headquarters stood in sharp distinction to one in all his earlier options that the constructing needs to be was a “homeless shelter” as a result of, he mentioned, so few workers really labored there.
The Washington Submit reported final week that Musk informed potential buyers that he plans to chop three quarters of Twitter’s 7,500 employees when he turns into proprietor of the corporate. The newspaper cited paperwork and unnamed sources conversant in the deliberation. A number of hours after posting his sink video, Musk tweeted that he was assembly “loads of cool individuals at Twitter right now!” He gave no particulars.
One in every of Musk’s largest obstacles to closing the deal was retaining in place the financing pledged roughly six months in the past.
A bunch of banks, together with Morgan Stanley and Financial institution of America, signed on earlier this yr to mortgage $12.5 billion of the cash Musk wanted to purchase Twitter and take it personal. Strong contracts with Musk sure the banks to the financing, though modifications within the economic system and debt markets since April have doubtless made the phrases much less engaging. Musk even mentioned his funding group could be shopping for Twitter for greater than it’s value.
Much less clear is what’s taking place with the billions of {dollars} pledged to Musk by buyers who would get possession stakes in Twitter. Musk’s authentic slate of fairness companions included an array of companions starting from the billionaire’s tech world associates with like-minded concepts about Twitter’s future, resembling Oracle co-founder Larry Ellison, to funds managed by Center Jap royalty.
The extra fairness buyers kick in for the deal, the much less Musk has to pay on his personal. Most of his wealth is tied up in shares of Tesla, the electrical automotive firm that he runs. Since April, he has bought greater than $15 billion value of Tesla inventory, presumably to pay his share. Extra gross sales may very well be coming.
Musk, 51, has shared few concrete particulars about his plans for the social media platform. Whereas he’s touted free speech and derided spam bots since agreeing to purchase the corporate in April, what he really needs to do about both stays a thriller.
Know-how analysts have speculated that Musk needs to make use of Twitter to assist create an “every thing app” just like China’s WeChat service, which permits customers to do video chats, message, stream video, scan bar codes and make funds.
Musk’s flirtation with shopping for Twitter appeared to start in late March. That’s when Twitter mentioned he contacted members of its board — together with co-founder Jack Dorsey — and informed them he was shopping for up shares and was enthusiastic about both becoming a member of the board, taking Twitter personal or beginning a competitor.
Then, on April 4, he revealed in a regulatory submitting that he had develop into the corporate’s largest shareholder after buying a 9% stake value about $3 billion.
At first, Twitter supplied Musk a seat on its board. However six days later, CEO Parag Agrawal tweeted that Musk wouldn’t be becoming a member of the board in spite of everything. His bid to purchase the corporate shortly adopted.
Inside Twitter, Musk’s supply was met with confusion and falling morale, particularly after Musk publicly criticized one in all Twitter’s high legal professionals concerned in content-moderation selections.
In July, Musk abruptly reversed course, saying that he was abandoning his bid to purchase Twitter. His acknowledged motive: Twitter hadn’t been easy about its drawback with pretend accounts he dubbed “spam bots.” Twitter sued, and two weeks earlier than a 5-day trial was scheduled to start, Musk modified his thoughts once more, saying that he wished to finish the deal in spite of everything.
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